Boosting Sectors for Job Creation through PLI Benefits

Deloitte recommends expanding PLI benefits to handicrafts and leather for job creation. The continuation of successful PLI schemes in electronics and semiconductors is advised. Suggestions include easing investment restrictions to enhance liquidity and focusing on reviving exports. Completing critical FTAs could bolster exports amid global challenges.

Deloitte has urged the government to extend the fiscal benefits under the Production Linked Incentive (PLI) scheme to include sectors like handicrafts and leather, which have high employment generation potential. This recommendation comes ahead of the forthcoming Budget announcement.

The advisory firm suggests continuing successful PLI initiatives in sectors such as electronics and semiconductors. To improve global liquidity, especially with potential shifts in Western monetary policies, Deloitte advises raising investment size caps and removing location restrictions to attract more foreign capital.

Economist Rumki Majumdar from Deloitte India highlighted the challenge of reviving merchandise exports, which have fallen by 3% in FY24. Completing Free Trade Agreements (FTAs) with countries like Oman, Peru, and the UK could help achieve the USD 1-trillion export target by 2030, amid ongoing global uncertainties.

(With inputs from agencies.)